Strength & Breaking Resistance

July 17, 2017

Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.

Gold is trading better this morning but in very light trading activity. It is reasonably impressive that gold is trading better even as the grains are weak, but perhaps the real strength is because the dollar is generally… or as noted above, universally… weaker and that shall tend on balance to put a bid into gold, all things being otherwise equal.

We are reasonably impressed that spot gold has traded to $1230 and has traded to $1232 in Asian dealing and is holding there as the baton is passed to Europe. We are even more impressed that Euro denominated gold is trading to €1075/oz. and is now trading upward through an important intra-day moving average it has not traded upward through since early June.

Also, gold in Yen denominated terms is trading better and is above resistance that has been stubbornly severe for the past several weeks. A close upward through ¥138,700/oz. would be most impressive. Most impressive of all, however, was the strength on Friday of gold mining shares, which at one time were 2.5-3.0% higher upon the day, finishing up 1.5-2.0%.

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